Coforge Finalizes Cigniti Merger After NCLT Nod, EBITDA Hits 19% and Top Client Revenue Triples

Context Coforge bought a 54% stake in Hyderabad‑based testing firm Cigniti in 2024 for roughly ₹1,023.9 crore (about $12 billion). The deal aimed to fuse Cigniti’s software‑testing expertise with Coforge’s engineering, data and cloud services, especially in healthcare and U.S. markets.

Key Facts - The Chandigarh bench of the National Company Law Tribunal (NCLT) approved the merger scheme under Sections 230‑232 of the Companies Act, setting April 1 2025 as the appointed date for the amalgamation. - Under the scheme, each Cigniti share (₹10 face value) converts to one Coforge share (₹2 face value), reflecting a revised 1:1 exchange ratio after Coforge’s stock split. - Post‑integration, the acquired business’s EBITDA margin rose from 11% before the purchase to 19% within six quarters, according to CEO Sudhir Singh. - Revenue from the unit’s two largest clients grew from $25 million annually to $75 million, driven by cross‑selling and larger contracts. - All assets, liabilities, contracts and ongoing proceedings of Cigniti transfer to Coforge, and Cigniti will be dissolved without a winding‑up process. - Shareholder and creditor votes were near‑unanimous; SEBI and both Indian stock exchanges cleared the transaction.

What It Means The merger consolidates Cigniti’s testing capabilities into Coforge’s AI‑led service platform, expanding its footprint in the U.S. Midwest and West while deepening its healthcare vertical. The sharp rise in EBITDA margin signals operational synergies, and the tripling of top‑client revenue suggests successful cross‑selling. Coforge plans to replicate this integration model for future acquisitions, aiming to accelerate growth in engineering, data and cloud services.

Looking Ahead Watch for Coforge’s first full‑year financials after the April 2025 effective date, which will reveal whether the integration delivers sustained margin expansion and market share gains.